On February 19, Gov. J.B. Pritzker gave his annual State of the State and budget address. He outlined priorities for the State of Illinois in FY 2026 while highlighting the state’s fiscal successes under his leadership. Gov. Pritzker revised his FY 2025 revenue forecast to $53.9 billion, an increase of $421 million from his office’s November 2024 forecast, due to strong personal income tax and sales tax collections. Given the positive revenue adjustment, he proposed a total of $650 million in supplemental appropriations and transfers in FY 2025: a $550 million FY 2025 supplemental appropriations package and $100 million proposed transfer of funds to Fund 611. Assuming the supplemental appropriations and transfers occur, the state projects to have an $8 million surplus in FY 2025.
While the Governor’s Office of Management and Budget (GOMB) projected a $3.2 billion budget deficit in November, Gov. Pritzker revised those estimates to a balanced FY 2026 budget proposal. His FY 2026 budget proposal estimates $55.453 billion in General Funds revenues and $55.234 billion in General Funds expenditures, leaving an estimated $218 million surplus. $154 million of the projected surplus would be reserved for a contribution to the Budget Stabilization Fund (rainy-day fund). The budget proposal fully funds the state’s $10.6 billion FY 2026 statutorily required pension contribution and reserves $78 million to make an additional pension contribution to address the Tier 2 Social Security safe harbor issue. While not explicitly mentioned in the FY 2026 budget address, Gov. Pritzker left the door open to his proposal from last year’s budget address to extend the long-standing 90% funding in FY 2045 pension funding ramp to 100% funding in FY 2048. This would be accomplished by earmarking revenues from expiring bond obligations in FY 2030 and FY 2033 to pensions.
Projected General Funds revenues are up 2.9% (or $1.553 billion) over GOMB’s most recent estimate for FY 2025. Relative to the enacted FY 2025 budget, revenues are projected to increase by 4.08% (or $2.17 billion). The revenue forecast benefits from an estimated $489 million in revenue increases: $198 million General Funds increase from a new Delinquent Tax Payment Incentive Program, $171 million from pausing the final shift of state sales taxes on motor fuel purchases to the Road Fund, $100 million from the realignment of tax treatment for table and electronic games at casinos, and $20 million from eliminating the 280E state-level deduction for cannabis industry business expenses.
On the spending side, total General Funds expenditures are up 2.5% (or $1.3 billion) over GOMB’s most recent FY 2025 estimate, which includes $650 million in proposed supplemental appropriations and transfers. Relative to the enacted FY 2025 budget, spending is projected to increase 4.07% (or $2.16 billion). 75% of all spending increases result from three items: $350 million increase to the Illinois State Board of Education’s (ISBE) evidence-based funding formula for K-12 schools, $436 million increase in pension spending, and $738 million increase in medical expenditures. When factoring out these three increases, overall spending is up less than 1% over the enacted FY 2025 budget. The budget proposal cut funding for the Health Benefits for Immigrant Adults (HBIA) program, saving the state $330 million in General Funds spending relative to the FY 2025 budget. Funding for the Health Benefits for Immigrant Seniors (HBIS) will be maintained at $110 million General Funds.
The General Assembly will pass a final budget before they are scheduled to end on May 31. This proposal is subject to change throughout the coming months. See attached for additional details from the State of the State and FY 2026 budget proposal.
GOMB FY 2026 Budget Proposal Documents
Operating Budget Data Files Description (pdf)
Operating Budgeting for Results Detail (xls)
Performance Measures Detail (xls)
FY25 Supplemental Details (xls)
General Funds Transfer Out Detail (pdf)
Prepaid Tuition Act Certification Letter (pdf)
Important Upcoming Dates – Statewide
March 21 – Initial Chamber Committee Deadline
April 11 – Initial Chamber Third Reading Deadline
May 9 – Opposite Chamber Committee Deadline
May 23 – Opposite Chamber Third Reading Deadline
May 31 – Adjournment
In the News
New details emerge as state senator’s bribery trial nears: ‘You can raise me five grand’ – Chicago Sun Times, February 21, 2025
Illinois Sen. Emil Jones III is accused of agreeing to limit the study of traffic enforcement systems to Chicago in exchange for $5,000 and money for an intern.
Illinois secession bill passes Indiana House – Chicago Tribune, February 20, 2025
Indiana House Bill 1008, authored by Speaker Todd Huston, R-Fishers, would establish an Indiana-Illinois boundary adjustment commission to research the possibility of adjusting the boundaries between the two states. The commission would include five members appointed by the Indiana governor and five members appointed under Illinois law.
U.S. attorney for southern Illinois court removed by Trump, chief judge confirms – Belleville News-Democrat, February 20, 2025
Rachelle Aud Crowe, the U.S. attorney for the Southern District of Illinois, was terminated by the President Donald J. Trump administration, Chief Judge Nancy J. Rosenstengel confirmed.
‘We have to live within our means:’ Pritzker’s $55.2 billion budget proposal eliminates healthcare program for undocumented immigrants – The Daily Line, February 20, 2025
Gov. JB Pritzker is proposing a $55.2 billion budget for Fiscal Year 2026 which includes no new taxes and eliminates a healthcare program for undocumented immigrants. The proposed budget is supported by $55.5 billion in projected revenue, a 2.9 percent increase from Fiscal Year 2025 and $1.5 billion more than the governor’s office projected in November.
Pritzker proposes cell phone ban in public schools, lower prescription drug costs, add some four-year degrees to community colleges – The Daily Line, February 20, 2025
In his annual state of the state and budget address, Pritzker proposed the creation of the Prescription Drug Affordability Act, which would aim to stop unfair practices by Pharmacy Benefit Managers (PBM).
Real ID deadline approaching — but ‘no need to freak out,’ Giannoulias says – Chicago Sun Times, February 20, 2025
Only 30% of Illinoisans have gotten a Real ID with the federal deadline coming May 7. But standard state drivers licenses and IDs will suffice for most situations unless you’re flying and don’t have a passport, according to Illinois Secretary of State Alexi Giannoulias.
Black, Latino lawmakers criticize Pritzker’s proposed budget – Capitol News Illinois, February 20, 2025
The Illinois Legislative Black Caucus and Illinois Legislative Latino Caucus together include about a quarter of all lawmakers in the General Assembly. Several of them pushed back on the governor’s proposal, which he called “responsible and balanced.”
Transit funding crisis on Pritzker’s radar but not budget proposal – Daily Herald, February 20, 2025
Absent from the general fund spending plan presented to the General Assembly was a mention of the $771 million shortfall facing Metra, Pace and the CTA in 2026.
Gov. JB Pritzker proposes belt-tightening budget with no new taxes, invokes Nazism in bashing Trump – Chicago Tribune, February 20, 2025
While Gov. JB Pritzker delivered a no-new-taxes, belt-tightening spending proposal for Illinois on Wednesday, the prospective presidential contender spoke to a larger, national audience by likening the actions of President Donald Trump and his followers to the rise of Nazism in 1930s Germany.
Indiana House passes Illinois secession bill on first reading, but amendments keep session lively – Chicago Tribune, February 20, 2025
Indiana House legislators gave initial approval to a bill aimed at redrawing the Indiana-Illinois border Wednesday, but the bill continues to open up a Pandora’s box of amendments — from marijuana legalization to allowing Indiana counties to secede.
Illinois lawmaker proposes bill to help teachers pay for school supplies – The State Journal Register, February 20, 2025
Jed Davis, R-Yorkville, introduced House Bill 3008 earlier this month that would provide teachers with a Classroom Supply Assistance Card that would purchase a list of preapproved items.
Pritzker to deliver seventh budget address as state officials predict a $3 billion deficit – The Daily Line, February 19, 2025
Gov. JB Pritzker will deliver his annual budget address Wednesday under the shadow of a looming deficit, spending mandates and the Trump administration.
Illinois Governor JB Pritzker to deliver annual ‘State of the State’ budget address – WCIA, February 18, 2025
The speech will be broadcasted at noon on Wednesday from the House of Representative Chambers in the State Capitol. In his address, Pritzker will lay out his priorities for the legislative session as well as what he wants to see in the budget.
Eliminating immigrant spending, boosting education funding top Senate Republican budget priorities – Capitol News Illinois, February 18, 2025
Gov. JB Pritzker set to give budget address Wednesday.
Democratic leaders paint brighter picture for Illinois finances after budget briefing – Chicago Tribune, February 18, 2025
A day before Gov. JB Pritzker unveils what he has promised will be a balanced budget, Democratic leaders who had been bracing for a deficit of more than $3 billion expressed confidence that the outlook had improved.
Illinois Republicans ask for no new taxes and transparency in funding ahead of Governor’s budget address – WAND, February 18, 2025
Illinois Senate Republicans demanded the Pritzker administration create no new taxes ahead of Gov. JB Pritzker’s budget address coming Wednesday.
McConchie’s would-be successor isn’t a Republican and can’t serve, lawsuit alleges – Daily Herald, February 18, 2025
Barrington Hills Trustee Darby Hills’ appointment to a vacant state Senate seat should be nullified because she doesn’t meet the state’s definition of a Republican, a lawsuit filed Tuesday argues.
Pritzker pitches $500M for shovel-ready real estate – Crain’s Chicago Business, February 19, 2025
JB Pritzker will ask state legislators for a half-billion dollars to attract new business to the state with ready-to-go real estate.
Senate committee postpones vote on bill expanding transportation voucher for sexual assault survivors – The Daily Line, February 19, 2025
he Senate Health and Human Services Committee on Tuesday postponed passing a bill that would allow for survivors of sexual assault to use transportation vouchers for rideshares.
Senate Education Committee approves bill to include agriculture in CTE requirement, change required time to complete independent educational evaluations – The Daily Line, February 19, 2025
The Senate Education Committee on Tuesday approved a measure to allow agriculture classes to fulfill the high school career and technical education (CTE) requirement.
Illinois secession bill passes Indiana legislative panel – Chicago Sun-Times, February 18, 2025
The bill would create the Indiana-Illinois Boundary Adjustment Commission that would make recommendations to redraw the border. It would require approval by both state legislatures and Congress. Gov. JB Pritzker says “it’s not gonna happen.”
SAVE Act would make voting harder for millions of Americans – Chicago Sun-Times, February 18, 2025
The head of the League of Women Voters of Illinois explains how the Safeguard American Voter Eligibility Act would restrict voting access by requiring people to show citizenship documentation when registering to vote or updating registration.
Trump order should put ComEd bribery case on hold, defense argues – WBEZ Chicago, February 18, 2025
Defense attorneys are pointing to a Feb. 10 executive order from President Donald Trump pausing enforcement of the Foreign Corrupt Practices Act.
Pritzker to deliver seventh budget address as state officials predict a $3 billion deficit – The Daily Line, February 18, 2025
Gov. JB Pritzker will deliver his annual budget address Wednesday under the shadow of a looming deficit, spending mandates and the Trump administration.
Illinois secession bill passes out of Indiana committee, but even supporters aren’t totally on board – Chicago Tribune, February 18, 2025
A bill to redraw the Indiana-Illinois border received initial approval Monday in an Indiana House committee, but the discussion opened up a Pandora’s box, with some of its Illinois supporters preferring to establish a new state and a Lake County representative suggesting that it could in turn secede from Indiana.
Jim Dey | State’s budget woes are no laughing matter – The News Gazette, February 18, 2025
Lt. Gov. Juliana Stratton: Illinois is fighting back against Donald Trump’s unconstitutional actions – Chicago Tribune, February 18, 2025
It’s been a month since Donald Trump took office for the second time, and the damage he has already managed to do is staggering. While his first term was defined by the trademark incompetence and chaos we’ve grown accustomed to seeing from Trump’s orbit, this time around, his team is taking a more insidious approach.
End of state grocery tax creates conundrum for suburbs facing revenue shortfall – Chicago Tribune, February 18, 2025
Officials in Clarendon Hills were discussing the elimination of the 1% statewide grocery tax, which is due to be effective Jan. 1, 2026. While that tax no longer will exist, municipalities have the authority to implement a 1% local grocery sales tax by ordinance. This authority applies to both home rule and non-home rule municipalities and ensures that municipalities wishing to retain this revenue source may do so without interruption.
Illinois democrats say they will continue to fight cuts to federal programs – WBBM, February 18, 2025
Democrats in Illinois’ Congressional delegation said they are ready to “fight until hell freezes over” to protect federal programs that help the neediest Americans.
Ex-Gov. Pat Quinn calls on Gov. JB Pritzker to push ethics reforms after Michael Madigan conviction – Chicago Tribune, February 18, 2025
Former Illinois Gov. Pat Quinn on Monday challenged Gov. JB Pritzker, a fellow Democrat, to use his bully pulpit to strengthen Illinois’ weak ethics laws, saying a “top-to-bottom overhaul” is needed after the federal corruption conviction of their former state party chairman, ex-Speaker Michael Madigan.
President Donald Trump’s moves to end foreign aid agency hit close to home in Illinois – Chicago Tribune, February 18, 2025
Presidential adviser Elon Musk conceded during an Oval Office news conference last week that an unsubstantiated claim made to justify the Trump administration’s freeze on federal foreign aid might not have been true.
Pritzker must address multi-billion-dollar deficit amid federal funding uncertainty – Capitol News Illinois, February 14, 2025
Annual budget address will be among toughest in governor’s two terms.
New state transportation chief hopes for ‘a good kind of disruption’ – Capitol News Illinois, February 14, 2025
IDOT Secretary Gia Biagi comes in as feds pause some program funding.
‘Whole different level.’ The Illinois-Indiana political divide widens amid Trump 2.0, from immigration to DEI to LGBTQ rights. – Chicago Tribune, February 16, 2025
The Trump administration’s surprise federal funding freeze met widespread condemnation in Illinois, as state leaders scrambled to fight the spending pause that spurred chaos and confusion prior to being temporarily blocked by a federal judge minutes before it was set to go into effect Jan. 28.
President Donald Trump’s moves to end foreign aid agency hit close to home in Illinois – Chicago Tribune, February 17, 2025
Presidential adviser Elon Musk conceded during an Oval Office news conference last week that an unsubstantiated claim made to justify the Trump administration’s freeze on federal foreign aid might not have been true.
Bill aims to reform Illinois’ child incarceration system – WCIA, February 14, 2025
A bill in the Illinois statehouse aims to change the state’s approach of juvenile incarceration, arguing the system needs to allow for more rehabilitation.
Advocate groups rally at Illinois Capitol for Clean Slate Bill – WCIA, February 14, 2025
A group of community leaders and advocates gathered at the Illinois State Capitol earlier this month, calling on lawmakers to introduce a bill that would automatically seal individuals’ criminal records after they serve their time.
FDA foot-dragging might have saved your hands and you never knew it – Chicago Sun-Times, February 16, 2025
The Trump administration is tearing down both regulations and the federal government that enforces them. The consequences will be enormous.
Illinois leaders: Stop pushing for big government, start helping small businesses – Daily Herald, February 15, 2025
Having access to meaningful work is one of the most important factors for families deciding where to plant roots.
Lawmakers have lots of options if they’re serious about ethics reform in Illinois – Chicago Sun-Times, February 14, 2025
In the wake of Michael Madigan’s conviction, lawmakers can restore public confidence in government. One idea: Rein in campaign contributions from public utilities, which have been at the center of corruption scandals involving Madigan and others.
Rod Blagojevich saga: From arrest to Donald Trump’s pardon – Chicago Tribune, February 14, 2025
Rod Blagojevich was freed from a federal prison in Colorado in February 2020, 16 months after former President Donald Trump commuted the 14-year sentence of the former Illinois Gov. Nearly five years later, Trump granted a full pardon to the disgraced former governor.
Ex-Speaker Michael Madigan’s conviction could give Illinois GOP a path to relevancy, but it’s still strewn with obstacles – Chicago Tribune, February 14, 2025
Michael Madigan’s vaunted political skills were often likened to a grandmaster of the 3-D chess board featured on the original “Star Trek” TV series in which he always appeared to be at least two moves ahead of his opponent.
Madigan case showcases pitfalls of Illinois political culture – Chicago Tribune, February 14, 2025
Former House Speaker Michael Madigan’s epic corruption conviction last week drew more than the usual level of outrage from public officials long accustomed to watching one of their own go down on criminal charges, but Gov. JB Pritzker issued a statement that came with a curious point.
Mixed verdict in Madigan case reflects a new, harder reality for federal prosecutors – Chicago Tribune, February 17, 2025
Shortly after former House Speaker Michael Madigan’s conviction on federal corruption charges, the leaders of Chicago’s top federal investigative agencies appeared in the lobby of the Dirksen U.S. Courthouse to do their usual spike of the football.
Feds, some lawmakers tackle post-Madigan efforts to curb public corruption – The Center Square, February 16, 2025
Federal authorities and state lawmakers say they will keep fighting public corruption in Illinois after the conviction of former Illinois House Speaker Michael Madigan.
Opinion: As biz leaders, we value public transit. But before we pay more, we need this – Crain’s Chicago Business, February 21, 2025
Public transit is the backbone of the Chicago region’s workforce and economy. Businesses depend on an efficient transit system to ensure employees arrive on time, customers have easy access to goods and services, and the region remains competitive for investment and growth.
Council debates, delays vote on proposal to eliminate remote participation option for alderpeople – The Daily Line, February 21, 2025
Members of the City Council on Wednesday debated whether to keep a rule that has allowed members to participate in council and committee business and vote virtually since the COVID-19 pandemic began.
Plan Commission green-lights land use plan that could bring thousands of new housing units to Edgewater and Uptown – Chicago Tribune, February 20, 2025
City planners said the framework will cut red tape for developers and increase housing density, hopefully allowing more residents to move into the transit-rich corridor, where the CTA will soon complete its $2.1 billion Red-Purple Line modernization project.
Alderman introduces plan to punish Chicago city employees and officers for having extremist ties – WBEZ, February 20, 2025
The Chicago Police Department and Mayor Brandon Johnson have faced growing calls to fire police officers with ties to hate and extremist groups. With those concerns in mind, Ald. Matt Martin, 47th Ward and chair of the City Council’s Committee on Ethics and Government Oversight, said the city needs to quickly investigate allegations and cease employment for those actively participating in extremism groups.
Speed limit reduction voted down, infrastructure bond plan delayed at council – The Daily Line, February 20, 2025
The City Council on Wednesday delayed the approval of an $830 million bond authorization to pay for various infrastructure improvements but voted down a reduction to Chicago’s default speed limit.
Plan Commission to consider land use plans for Broadway, 95th Street, apartment tower in Lincoln Park – The Daily Line, February 20, 2025
The Chicago Plan Commission will meet Thursday to consider a plan to upzone a portion of Broadway in Edgewater and Uptown, a large mixed-use building in Lincoln Park and a corridor plan for a portion of 95th Street.
AIDS Foundation Chicago sues Trump administration over executive orders involving equity, gender – Chicago Tribune, February 20, 2025
The AIDS Foundation Chicago, the National Urban League and the National Fair Housing Alliance filed the lawsuit in federal court in Washington, D.C., seeking to halt three recent executive orders.
In Chicago, Justice Ketanji Brown Jackson touts the primacy of the Constitution: ‘No one is above the law’ – Chicago Sun Times, February 20, 2025
Justice Ketanji Brown Jackson, making clear she was speaking in general terms, raised questions about President Donald Trump’s recent efforts to push the limits of his power.
How the COVID-19 pandemic changed Chicago – Crain’s Chicago Business, February 19, 2025
In the five years since the COVID-19 lockdowns upended lives and businesses, many have returned to what looks like a pre-pandemic “normal.” But not all. The pandemic’s effects still weigh on Chicago in numerous ways.
Opinion: What Chicago has to lose as the DOGE ax slices through the federal government – Crain’s Chicago Business, February 19, 2025
During a speech in 1986, President Ronald Reagan made what has become a familiar statement: “The nine most frightening words one can hear are as follows: ‘We’re from the government, we’re here to help.'” Reagan’s remark has new meaning under President Donald Trump’s second administration, causing confusion and fear among federal employees.
Johnson signals more City Hall shakeups coming – Crain’s Chicago Business, February 18, 2025
Without spilling names, Mayor Brandon Johnson suggested today there will be more departures of senior leaders from his administration.
Housing committee approves vacant fire station land sale – The Daily Line, February 19, 2025
The City Council Committee on Housing and Real Estate briefly reconvened Tuesday to approve a land sale that did not get consideration at last week’s meeting.
Mayor Johnson says staff changes were ‘personal decisions’ despite housecleaning promise – Chicago Tribune, February 18, 2025
Mayor Brandon Johnson downplayed the recent departures of some top city officials Tuesday, arguing the exits that came days after he hinted he was rooting out disloyal staff were “personal decisions” the outgoing employees made themselves, not firings.
Mayor Brandon Johnson’s infrastructure funding bond plan draws pushback from critics who say it kicks can down road – Chicago Tribune, February 18, 2025
Mayor Brandon Johnson’s planned $830 million bond to pay for a variety of capital projects faces pushback from aldermen and others for its backloaded payment schedule and fears about the city’s long-term debt load.
Trump’s Friday firings leave EPA Chicago office down dozens of scientists, staff – Chicago Sun-Times, February 18, 2025
Dozens of probationary employees were cut because they didn’t have job protections.
Back-loaded repayment schedule for $830M bond issue adds $2B to borrowing costs, experts say – Chicago Sun-Times, February 18, 2025
The City Council is scheduled to take a final vote on the general obligation bond issue at Wednesday’s meeting, but any two alderpersons can use a parliamentary maneuver to postpone the final vote. They don’t need to provide a reason for that delay.
Mayor Johnson preps for sanctuary city testimony, seeks state funds for transportation and education – ABC7 Chicago, February 18, 2025
Chicago Mayor Brandon Johnson is looking to Springfield with two open hands at a time when the state is facing a $3 billion deficit.
Zoning committee to consider plans for massive United Center development, Black Ensemble Theater campus, Fulton Market developments – The Daily Line, February 18, 2025
The City Council Committee on Zoning, Landmarks and Building Standards will meet Tuesday at 10 a.m. and consider approval of the multi-billion-dollar mixed-use project proposed for the United Center area, a performing arts campus in Uptown and multiple mixed-use developments.
Police and Fire committee to consider Police District Council appointments – The Daily Line, February 18, 2025
The City Council Committee on Police and Fire on Tuesday will consider appointments to fill vacancies on three of the city’s Police District Councils and new contracting powers for the fire commissioner.
Chicago-area federal workers on edge as Trump guts agencies: ‘It’s devastating’ – Chicago Sun Times, February 16, 2025
More than 48,000 federal workers in and around Chicago have been on edge for weeks as President Donald Trump aims to drastically reduce the federal workforce.
Federal plan to reduce government office space could be a blow to Chicago, where selling properties wouldn’t be easy – Chicago Tribune, February 16, 2025
The future of the federal government’s footprint in Chicago is uncertain as the Trump administration embarks on a plan to shed up to half of all government office space across the nation, while also shrinking the federal workforce.
Activists anxiously await air monitors, hope Chicago isn’t backsliding on pollution promises – Chicago Tribune, February 16, 2025
Chicago is building what climate scientists say could be the country’s best system for monitoring tailpipe pollution from diesel trucks.
Chicago-area federal workers on edge as Trump guts agencies: ‘It’s devastating’ – Chicago Sun-Times, February 16, 2025
More than 48,000 federal workers in and around Chicago have been on edge for weeks as President Donald Trump aims to drastically reduce the federal workforce.
Puppeteer who made ‘U.S.-Israel War Machine’ says art is ‘misrepresented’ – Chicago Sun-Times, February 14, 2025
Aldermanic protest against the exhibit has raised its profile at the Chicago Cultural Center. ‘It’s a criticism of governments, not people,” the artist says.